Image credit: GettyAmazon plans to allow sellers on its e-commerce marketplace in the country to advertise on its portal without advance payment starting this festive season. The advertising fee will be deducted from sales proceeds under the new system that has already been launched in the US, UK, Germany and Japan.

Listing benefits of the new system, the ecommerce company in an email told its sellers: “How will you benefit? No more need for advance payment for advertising; no more stopped campaigns because of ads running out of balance; no need to wait for two to three days for your advertising balance update; no more payment failures; you can run your ads even if you don’t have net banking, credit card & debit card.”

ET reviewed the email.

Gopal Pillai, director, seller services, at Amazon India, said, “This payment system has been very successful in markets such as the US and Germany, and we are confident Indian sellers will also benefit immensely from this.” He said the system will allow sellers to focus on their core operations without worrying about advertising challenges, specifically during the festive season.

Amazon’s current system of payment for advertising requires sellers to recharge their account even before using the service, impacting cash flow in several cases. The company did not reveal the exact date when it will introduce the new ad fee payment system in the country.

Amazon is also organising multiple events across the country to groom sellers for increasing sales ahead of the upcoming festive season to increase sale. Pillai said the firm wants to invite top performing sellers to its Amazon Connect event. “This is also an opportunity for us to discuss how excited we are about the upcoming festive season so that they are better prepared for it,” he added.

E-commerce marketplaces in India are trying out innovative ways to increase sales on their platforms and make the best use of the biggest shopping opportunity of the year in the upcoming festival season, a period that traditionally marks an upsurge in consumer spending.

Top e-commerce players are offering fatter margins during the season as incentive to sellers and encouraging them to pass on the benefits to consumers. They have also been consolidating their backend and logistics networks to ensure faster deliveries to consumers.